Capital Goods Stocks Outlook for the week – 11 to 15.04.2016
(Seen rangebound with weak bias next week)
( www.rupeedesk.in )
Shares
of capital goods companies are seen trading in range with a weak bias next week,
as investors are likely to remain cautious ahead of what is largely expected to
be another weak earnings quarter for the sector.
In
the near-term, capital goods companies are seen weakening and investors may choose
to wait before taking new positions. Sector major Larsen and Toubro Ltd is expected
to miss its twice-revised order inflow guidance of achieving 5-7% consolidated
order inflow growth.
So
far, the company has announced orders worth 163.4 bln rupees to the exchanges.
To
meet
the order inflow guidance, it needs to get orders worth 650 bln rupees,
excluding
information
service contracts. However, shares of state owned Bharat Heavy Electricals
Ltd,
which had been moving along a weak trajectory in recent weeks, found some
relief
during
this week after the company reported a provisional net profit of 3.96 bln
rupees
for
Jan-Mar, following two consecutive quarters of losses.